Two countries, Pakistan and India, produce two commodities: apples and mangoes. The amount of each commodity produced per hour, in kg, for Pakistan is: 6 apples, and 6 mangoes. Meanwhile, it is 5 apples and 4 mangoes for India. a.) What is the opportunity cost for mangoes in the two countries? How does it differ from relative price? Explain.
Q: Only typed solution
A: U(x, y) = (x^a * y^(1-a))^b + y= x^(ab) * y^(b - ab) + y= x^(ab) * y^(1 - ab) + y= x^(ab) * [y^(1 -…
Q: Consider the following simultaneous-move three-player game: Player 3 A B C Player 1, L R L R L R…
A: The statement that is true is: There are no pure-strategy Nash equilibria of this…
Q: Consider two goods, plane tickets and juice. Suppose Tim is to choose the optimal quantities of both…
A: The budget line shows the different combinations of two goods that a consumer can consume given the…
Q: Please answer all question, it's really matter. ( not very long, just short understandable answers)…
A: Fiscal policy refers to the use of government spending and taxation to influence economic activity.
Q: 1. A city with 24 households (12 Gnome households and 12 Kender households) has two distinct…
A: Game theory is a branch of arithmetic and economics that deals with the evaluation of strategic…
Q: Leah consumes at a point on her budget line where her marginal rate of substitution is less than the…
A: A. a higher indifference curve.Explanation:To solve this problem, we need to understand the…
Q: The spreadsheet gives real GDP (Y) and its components in billions of dollars. Calculate aggregate…
A: Aggregate expenditure is the current value of the finished goods and services in the economy. It…
Q: $58.25 $55 $53.25 $50 7M 8M 9M 10M What is the pre-tax equilibrium price?? $1 D1 D2 a
A: The market forces of demand and supply intersect each other at the equilibrium point. At this point,…
Q: Cumulative Percentage of National Income 100 50 10 10 Country A 0 50 80 Figure 1 A7. Refer to FIGURE…
A: Lorenz curve is a graphical representation of the relationship between the income percentage and the…
Q: Read GDP (Y) (Trillions of dollars per year) 0 1 2 Aggregate Expenditures (AE) (Trillions of dollars…
A: The alignment of the aggregate expenditure line with the 45-degree line, symbolizing parity with…
Q: 1. What is a minor but important change you would like to see applied to fiscal policy? 2. What is…
A: Here we need to address the changes in fiscal and monetary policy which will increase the…
Q: Draw the Solow model and fully label your graph. Suppose savings rate increases. Show the effect on…
A: Economic growth model refers to the neoclassical economic growth model where the long run economic…
Q: Kevin likes going to the ballpark to watch baseball, and he also is fond of going to the theater to…
A: Budget constraint is the equation that shows how the income of the consumer puts a constraint on the…
Q: 15 10 5 0 0 10 20 30 40 50 60 70 80 90 100 Quantity Consider the figure shown. What is the consumer…
A: Consumer surplus(CS) measures the benefits consumers receive from purchasing a good or service. It…
Q: Lena Lollipops produces lollipops by batch. It has established that there is a certain learning…
A: Cost can be defined as a concept that shows the amount of expenditure and any other sacrifice such…
Q: How is small business afeacted in local economies and in global marketplace?
A: The impact of small businesses on local economies and the global marketplace is significant. Small…
Q: Two countries, Pakistan and India, produce two commodities: apples and mangoes. The amount of each…
A: In short:Opportunity Cost for Mangoes:Pakistan: 1 apple per mango.India: 1.25 apples per…
Q: $200 500 520 D1 Do Quantity, in thousands Calculate the value of price elasticity of supply. Round…
A: Market equilibrium(E) is a state in economics where the quantity(Q) of services and commodities…
Q: Why was the US economy so disinflationary and deflationary in the 1800s? 3. What prompted the…
A: 2. Economic Conditions in the 1800s: The US economy in the 1800s witnessed disinflation and…
Q: See the cost information in the table below. The marginal cost of the 5th unit is Quantity…
A: The objective of the question is to calculate the marginal cost of the 5th unit. Marginal cost is…
Q: As monetary policymakers become more concerned with inflation stabilization, the slope of the…
A: Economic analysis is the practice of looking at data and patterns to better understand economic…
Q: Consider the information above. In equilibrium, what will the market price be? a) $20 b) $65 c) $80…
A: A dominant firm market, also known as a dominant firm oligopoly, is a market structure characterized…
Q: 2. (40 points) In their 1999 Applied Economics Letters paper, Zakir and Wunnava proposed the…
A: The objective of the question is to interpret the results of a regression model proposed by Zakir…
Q: ou have really gone above and beyond in spending on your fraternity initiation party and ran up $11,…
A: The concept of ROR can be explained as the part of a loan or deposit that is charged as interest to…
Q: The concept of diminishing returns to a factor of production applies not only to capital but to…
A: The concept of diminishing returns to a factor of production is a fundamental economic principle…
Q: You own a hot dog stand that you set up outside the student union every day at lunch time.…
A: Price Elasticity of Demand measures the percentage change in the quantity demanded of a good or…
Q: When China’s clothing industry expands, the increase in the world supply lowers the world price of…
A: Total surplus is the sum of both the consumer surplus and the producer surplus for a particular…
Q: This proves that, as the price of a good rises, producer will want to supply more because (if they…
A: A supply curve is a graphical representation of the relationship between the quantity of a good or…
Q: Consider a small macroeconomy located near the South Pacific Ocean where the current interest rate…
A: The aggregate expenditure model is fundamental for understanding and predicting economic dynamics.…
Q: ECON 122: Short Writing Assignment #3 Suppose there are two different labor markets, A and B, each…
A: The objective of the question is to understand the impact of changes in working conditions on labor…
Q: do fast i will 10 upvotes.
A: The objective of the question is to find the cost function associated with the given production…
Q: 5. Canadian Loanable Funds Market: Assume the Canadian Federal Government increases their budget…
A: The financial market in country C is critical to capital allocation, risk management, and economic…
Q: What was the dominant form of business in 1840s America? a) Small firms run by individuals or…
A: In the 1840s, the dominant form of business in America reflected the predominantly agrarian and…
Q: Convince me that the minimum wage should NOT be increased. Use key terms. Cite examples.
A: Minimum wage is the legalised lowest wage which is given to workers in monetary terms for their…
Q: Give three examples of governments that are adept in the use of fiscal policy
A: Fiscal policy proficiency refers to a government's ability to effectively and strategically use…
Q: Question 12 Units Consumed Total Utility Marginal Utility. 0 0 1 W 20 2 35 X 3 Y 10 4 40 Z Refer to…
A: Total utility refers to the satisfaction a consumer gets from different levels of…
Q: Price of Canadian dollars in U.S. dollars 1.05 1.03 1.01 0.99 0.97 20 40 60 80 100 Quantity of…
A: a) The intersection of the demand and supply curves gives the equilibrium quantity of dollars…
Q: a. Complete the following cost schedule by computing marginal cost, average fixed cost, average…
A: a. we will calculate the values in the table: Output TC ($) TFC ($) TVC ($) MC ($) AFC ($) AVC ($)…
Q: 1. What is NAIRU? Why is it important, but challenging for economic policy makers? 2. What is the…
A: The unemployment rate is the percentage of people who remain unemployed. It is calculated by taking…
Q: Suppose that Lionel Messi is negotiating a contract with FC Barcelona. Messi has an offer from Real…
A: Game theory in sports economics investigates the tactical interplay of players, squads, and…
Q: Calculate private market equilibrium and the socially optimal equilibrium for the following negative…
A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…
Q: Farmer Jones grows sugar. The total revenue, marginal revenue, total cost, and marginal cost of…
A: Marginal cost refers to the cost of production a firm incurs due to the production of one more unit…
Q: Demand, Supply, and Market Equilibrium - Think of a product that you have purchased recently (e.g.…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: 1. The example in the previous chapter, National Homebuilders, Inc. evaluated cut-and-finish…
A: The objective of this question is to demonstrate the equivalence of Present Worth (PW) over three…
Q: 1. Consider two firms producing hats, A and B. The demand functions are as follows: 9A (PAPB) =…
A: Demand measures the willingness and the ability of the individual to pay for the commodity. The…
Q: Suppose the demand function for movies for college students is: Q₁ =40-0.500p and for other town…
A: Demand schedules and curves constitute essential economic instruments given that they demonstrate…
Q: Consider an individual for whom utility is U = ln(I) There are two states of the world (G,B):…
A: According to the theory of uncertainty, an individual's expected utility represents the average…
Q: AutoSave File d Document Word P Chris Navo 319 Home Insert Draw Design Layout References Mailings…
A: Given,The CD production function In the year 1920,
Q: Use the diagram to answer the following few questions. From orders entered for an opening auction,…
A: Demand in the market represents the amount of goods and services consumers are willing to purchase…
Q: over the years. 5.1. Use a diagram to illustrate the effects of rent control ($800) in a market…
A: Here we have analyse the price ceiling is rent control that has been used in various markets over…
Two countries, Pakistan and India, produce two commodities: apples and mangoes. The amount of each commodity produced per hour, in kg, for Pakistan is: 6 apples, and 6 mangoes. Meanwhile, it is 5 apples and 4 mangoes for India.
a.) What is the
Step by step
Solved in 1 steps
- Two countries, Pakistan and India, produce two commodities: apples and mangoes. The amount of each commodity produced per hour, in kg, for Pakistan is: 6 apples, and 6 mangoes. Meanwhile, it is 5 apples and 4 mangoes for India. a.) What is the opportunity cost for mangoes in the two countries? How does it differ from relative price? b.) What is the principle of comparative advantage? Which country has comparative advantage in apples? c.) Suppose that apples and mangoes are exchanged internationally at a rate of 0.9 mangoes per apple. Which country will export apples and why? Assuming both countries have 180 hours of labour each, draw the PPFs of both nations to illustrate the answer, and explain why both countries are better off after the trade.Question 1: Assume there are two nations: Panama and Guatemala that produce two commodities: coconuts and passion fruits. The table below contains the amount of each commodity produced per hour of labour in the two nations in terms of Kg. Panama Guatemala Passion fruits 4 Соconuts 6. 5 a) What is the opportunity cost of passion fruits in the two countries? How does it differ from relative price? b) What is the principle of comparative advantage? Which country has comparative advantage in passion fruits?As the manager at a local florist, you supervise two employees, Anita and Jerome. There are two tasks that need to be completed: floral arrangements and flower delivery. It takes Anita 30 minutes to finish one floral arrangement and it takes her 40 minutes to make one delivery. It takes Jerome 10 minutes to finish one floral arrangement and it takes him 30 minutes to make one delivery. a. Who has a comparative advantage in floral arrangements? What about deliveries? b. Suppose, initially, Jerome and Anita each spent 4 hours each day doing floral arrangements and 2 hours each day doing deliveries. If you changed their tasks so that each individual did nothing but the task for which they had a comparative advantage, how many more floral arrangements would your store make, and how many more deliveries?
- Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. Graph Home’s production possibility frontier. What is the opportunity cost of apples in terms of bananas? In the absence of trade, what would be the price of apples in terms of bananas? Why?I am eight hour day Andy can produce either 24 loaves of bread or 8 kilograms of butter. In an eight hour day Rolfe can produce either 8 loaves of bread or 8 kilograms of butter. a)what is Andy's opportunity cost of producing one loaf of bread? What is rolfes opportunity cost of producing one loaf of bread b) who has the comparative advantage in bread production? Who has comparative advantage in butter production? c)would they both gain from specialization and trade in other each other? Show it through a numerical exampleA) Which producer has the comparative advantage in producing puzzles? Geppetto or Lewis B) Which producer has the comparative advantage in producing puppets? C) If both producers decided to trade with each other to stock their toy stores, which of the following is a range of terms of trade that would benefit both Geppetto and Lewis (1 puppet = x puzzles)? Please explain to me how to solve those questions. Don't just give me the answers. Thank you so much!
- Country A Country B 200 corn 600 150 375 100 50 50 75100 150 200 cars 25 50 75 100 cars a) What is the opportunity cost of making cars in each country? Make clear how you find this and what it means. b) If the countries were to specialize and trade, which country should specialize in making cars? Why? c) If the countries specialize completely according to comparative advantage (i.e.each produces only what they have the comparative advantage in) what would be the total production of cars and corn? How does this compare to the total production at their original pre-trade production points? d) Suppose the country that specializes in making only cars trades with the country that makes no cars. The car-maker sends the other country as many cars as they were consuming before trade. How much corn could the corn-making country trade for these cars and have both countries be better off than they were before trade?Assume that Home and Foreign produce only two goods – Cars and Tvs. Home has 400 units of labour available. In Home, the unit labour requirement in car production is 40 and in TV production it is 20. On the other hand, Foreign has 450 units of labour available. Foreign’s unit labour requirement in car production is 75, while in TV production it is 15. i. Suppose that the number of workers increases from 400 to 800 in Home. Find the new equilibrium relative price. What can you say about the efficiency of world production and the gains from trade between Home and Foreign in this case? j. Suppose that Home has now 800 workers, but they are only half as productive in both industries as we have been assuming. Consider Foreign to have the initial 450 workers only and the same productivity in both industries. Construct the world relative supply curve and determine the equilibrium relative price. How do the gains from trade compare with those in the case described in problem h.There are two countries: Country A and Country B. These countries have the same amount of resources and both produce the same two goods, pencils and markers. The opportunity cost of pencils in Country A is ½ markers per pencil and the opportunity cost of pencils in Country B is 4 markers per pencil. Which country has a comparative advantage in each good? Group of answer choices Country A has a comparative advantage in both goods Country B has a comparative advantage in both goods Country A has a comparative advantage in markers; Country B has a comparative advantage in pencils Country A has a comparative advantage in pencils; Country B has a comparative advantage in markers
- The first three questions are based on the following information: Assume two nations: Vietnam and US, and two commodities: clothing and wheat. There is only one factor of production: labour. The following table presents the number of hours it takes to produced one unit of the good in each nation: Vietnam US wheat 6 5 clothing 4 8 1. The relative price of clothing in the US is a) 5/8 kg of wheat b) 8/5 yards of clothing c) 8/5 kg of wheat d) 5/8 yards of clothing 2. If US and Vietnam were to trade, the relative price of wheat a) Can be 2 yards of clothing b) Must be between 5/8 and 1.5 yards of clothing c) Must be between 2/3 and 1.6 yards of clothing d) Can be ½ yards of clothing. 3. According to labour theory of value, a) US will have absolute advantage in the production of clothing and wheat. b) Vietnam will have comparative and absolute advantage in the production of clothing. c) Vietnam will have comparative advantage in the production of wheat. d) US will have comparative…Suppose countries A and B produce and consume (assuming convex preferences) apples and bananas using only labour. Unit labour cost for apples in country A are 1 and 2 in country B. Unit labour cost for bananas are 2 in country A and 5 in country B. The labour force is the same in both countries, and given by 100 in each country. Which three of the following statements are true? A Country B has a comparative advantage in producing bananas. B Allowing for international trade, the production of 50 apples and 50 bananas can occur in a global market equilibrium feasible, but not in market equilibria under autarky. C Each country has an absolute advantage. D Allowing for international trade, the production of 50 apples and 50 bananas is feasible, but not under autarky. E Under autarky, the relative price for apples (price for apples/price for banans) equals 0.5 in country A and 0.4 in country B. F Country A will produce bananas, with or…Two countries (Home and Foreign) use labor to produce two goods: Cloth and Wheat. The number of units of the good that can be produced by one unit of labor are given below. The number of units of labor in the Home And Foreign countries are 10 and 30, respectively. a) Calculate the opportunity costs of Cloth in the two countries, briefly describing your calculation. What are the goods in which the countries have comparative advantage? b) Use appropriate examples for world price and indifference curves to show that both Home and Foreign benefit from trade. Mention the world price, and the point where production and consumption occur in the two countries after trade. Wheat Cloth Home 12 3 Foreign 4 2